The relationship between privatization and corporate taxation policies

DOI PDF Web Site 被引用文献1件 参考文献60件

この論文をさがす

説明

We investigate how the corporate (profit) tax rate affects the optimal degree of privatization in a mixed duopoly with a minimal profit constraint for the private firm. We show that the profit tax rate directly affects the behavior of the partially privatized firm, and therefore affects the behavior of the private firm through strategic interactions. Regardless of whether the constraint is binding, the optimal degree of privatization increases with the corporate tax rate. The reason is that an increase of corporate tax rate reduces the profits flowing to foreign investors, which mitigates the welfare losses of privatization. Furthermore, the optimal degree of privatization decreases (increases) with the foreign ownership share in the private firm if the constraint is ineffective (effective). This result suggests that a minimal profit constraint can be crucial in the optimal privatization policy.

収録刊行物

  • Journal of Economics

    Journal of Economics 133 (1), 85-101, 2020-09-04

    Springer Science and Business Media LLC

被引用文献 (1)*注記

もっと見る

参考文献 (60)*注記

もっと見る

関連プロジェクト

もっと見る

詳細情報 詳細情報について

問題の指摘

ページトップへ